Under These Programs, Each Employer Is Responsible for Paying the Losses

question 46

Multiple Choice

Under these programs, each employer is responsible for paying the losses of the group when necessary-such as in the case of a member's insolvency.The employer's risk is not transferred; only the payment of losses is shared through the pooling mechanism.The members of these programs buy stop-loss coverage and are required to obtain regulatory approval for their existence.Identify these programs.

• A)Group self-insurance programs
• B)Captive reinsurance programs
• C)State-operated workers' compensation programs
• D)Captive insurance programs
• E)Stock reinsurance programs

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Definitions:

Individuality Corollary

A principle that acknowledges the uniqueness of each individual's perception and understanding of the world, as proposed by George Kelly's personal construct theory.

Kelly's

Pertains to George Kelly's Personal Construct Theory, which focuses on how people create constructs as mental models to interpret the world.

Opinions

Beliefs or judgments that are not based on certainty or knowledge but rather on what one thinks or feels to be true or probable.

Neurotic Behavior

Patterns of thinking, feeling, and behaving that are maladaptive, self-defeating, and indicative of some form of psychological distress.